The LEGO Group - External Environment
1.1
Porters Five Competitive Forces
1.1.1
Threat of New Entrants
1.1.2
Threat of Substitute Products or Services
1.1.3
Bargaining power of the Customer
1.1.4
Bargaining power of the Suppliers
1.1.5
Intensity of Competitive Rivalry
1.2
PESTLED Analyses

INTRODUCTION
As of February 2015, LEGO ranked is as the “world’s most powerful
brand” (Brand Finance, 2015). However, when ‘Jørgen Knudstorp’ took on his
position as CEO of the LEGO Group in 2004, the organisation was performing a
loss. In perspective, as 2004 the LEGO Group reported revenues of some DKK 6.770 million and
total expenses amounting to an approximate DKK 7.919 million (LEGO, 2012).

Fortunately, the LEGO Group is in a stable and health position again, reporting a net profit of some
$1.1 billion in 2013 (LEGO, 2013). The success of Jørgen as CEO can be attributed to numerous
improvements, such as the capital restructure or adjustments to the value chain. Currently, on
average, LEGO produces some 12 minifigures a second (Farshtey & Lipkowitz,...